LONDON, UK: Hill & Smith plc, the international provider of sustainable infrastructure products and services, announced the acquisition of FM Stainless, LLC.

The Group has completed the acquisition of the business and assets of FM Stainless from its principal shareholder, Chad Hood, who will be staying with the business.

The initial cash consideration is $8.25m (c.£6.6m), on a debt and cash free basis. Further cash consideration of up to $0.5m (c.£0.4m) is payable, conditional on achievement of financial performance targets in the year following acquisition.

FM Stainless, located in Ellijay, Georgia, manufactures stainless steel pipe supports, expansion anchors and fasteners principally for water and waste water, attractive end markets with strong growth prospects underpinned by significant multi-year investment in water infrastructure. FM Stainless sells its products across the US, with particular focus within the southeast region, a geography which has seen favourable demographic movements.

FM will become part of The Paterson Group, within our Engineered Solutions division and will expand our geographical customer base, generate cross selling opportunities and provide additional manufacturing capacity and capability.

In the 12 months to 31 December 2023, FM reported unaudited revenue of $8.6m, adjusted EBIT of $1.6m and gross assets as at 31st December 2023 of $5.5m.

The acquisition will be funded from the Group’s existing borrowing facilities and is expected to be earnings enhancing to the Group in 2024.

Alan Giddins, Executive Chair, said: “The acquisition of FM Stainless will expand our geographical customer base, increase our manufacturing capability and generate material cross selling opportunities in an attractive growth market. I am delighted to welcome FM and its employees to the Group.”